At CIC we treat fire insurance as the main insurance business. Other classes of insurance are considered as "accommodation" business. The basic fire policy is called the standard fire policy because it covers same perils, that is, fire, lightning, and limited explosion.

Fire
Fire is the actual ignition of something that should not be on fire, the cause being accidental or fortuitous. There are exclusions under this peril, however.

Lightning

Any loss caused by lightning is covered under fire policy

Explosion
Explosion cover is limited to explosion of boilers or gases used for domestic purposes. The use, however, will determine if the boiler or gas is domestic. In this regard, a boiler located in the factory but used to boil water for making tea or washing hands is regarded as domestic.

SPECIAL PERILS UNDER FIRE POLICY

The standard fire policy may be extended to cover other perils which are classified here below:


a) Social Perils

b) Chemical Perils

c) Natural Perils

d) Miscellaneous Perils

Long-Term Agreements under Fire Policies

This is where the insurer gives a premium discount in consideration of the insured offering to renew the contract for a given term, for example, three or five years. The insured is under obligation to renew. Failure to do so will require that the insured pays back the enjoyed discount However, if the insurer changes the terms and conditions of the contract, the insured is not bound to renew.